Inflation can be measured by the
A)change in the consumer price index.
B)percentage change in the consumer price index.
C)percentage change in the price of a specific commodity.
D)change in the price of a specific commodity.

Question

Quizplus · Accepted Answer

Inflation is typically measured by the percentage change in the consumer price index (CPI), which reflects changes in the prices of a basket of goods and services consumed by households. This is the most commonly used measure of inflation as it provides a broad-based measure of changes in the cost of living over time. Changes in the price of a specific commodity may not reflect overall changes in the economy and may not be representative of inflation as a whole.

Inflation Can Be Measured by the